Minnesota has eye on sequester gridlock, millions in federal cuts

L C Riddle, a driver for the North Minneapolis Meals on Wheels program, makes a delivery to Lynelle Nerisonon on Tuesday. If the sequester kicks in, nutrition programs for Minnesota seniors reportedly could see $845,000 in federal cuts through September. (Pioneer Press: Scott Takushi)

The partisan bickering of Washington feels a world away from the North Minneapolis neighborhood where Tyra Fort grew up.

But unless Congress and the White House reach a compromise by Friday, March 1, to avoid $1.2 trillion in across-the-board budget cuts over the next decade, it is communities such as Fort's that will take the brunt of that gridlock.

About $85 billion in reductions under sequestration will come between Friday and September when the fiscal year ends. Some will have an immediate impact; others will take time to be felt or won't happen at all if lawmakers intervene.

For Fort, it could mean cuts to the North Minneapolis Meals on Wheels program she works with to deliver meals and provide outreach to seniors and homebound residents in her old neighborhood.

"They are so happy to see me coming," Fort said of the agency's clients. "These people are counting on these meals."

Nutrition programs for Minnesota seniors could face an $845,000 cut during the remaining months of the fiscal year, according to a state-by-state breakdown of affected services prepared by the Office of Management and Budget for the White House.

It's just one example of the reductions that could hit everything from education and public health to defense spending and national parks.

Denise Mwasyeba, executive director of the North Minneapolis Meals on Wheels program, said she and other social service providers are worried about the budget cuts impact. "It will put our program in jeopardy," she said.

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But the cuts don't necessarily mean immediate doom and gloom for Minnesota and Wisconsin residents.

In fact, the economic pain that sequestration will cause in Minnesota and Wisconsin should be less than most states nationwide, according to a report by the Pew Center on the States, a public policy think tank.

That's because the two states are generally less reliant on government spending targeted by the cuts than the national average.

Just 5 percent of Minnesota state revenues and 5.5 percent of Wisconsin revenues come from federal grants at risk under sequestration, Pew found.

In neighboring South Dakota, however, more than 10 percent of state revenue could be cut. The national average is 6.6 percent.

The state could see as much as $15 million in cuts to the Army and civilian defense workers, the federal Office of Management and Budget reported. Yet, that makes up just 1 percent of Minnesota revenue compared with the 3.5 percent national average.

Wisconsin's reliance on federal defense dollars is just above the 3.5 percent national average. In states such as Hawaii, Alaska, Maryland and Virginia, defense spending is 10 percent or more of state's economic activity.

Still, if and when the projected cuts are implemented, they will affect residents of all ages and walks of life.

In Minnesota and Wisconsin, a total of 1,600 toddlers could lose access to Head Start and early education services. Nearly 90 of those children live in Ramsey County where Deb Moses, director of the program for the Community Action Network, said she will likely have to cut four classrooms of students.

"Those are real kids, not a budget cut," Moses said. "It would be an immediate and dramatic disruption of services for some of the most at-risk kids in our community."

Like many, Moses said she's frustrated that funding cuts to her program have become a political bargaining chip in the larger debate over government spending.

"It makes me sick," she said. "I don't know what they are doing or thinking, but there are real people involved."

Cuts to other education programs wouldn't be felt this school year, but if the reductions remain in place they could make budgeting for next year even trickier. In Minnesota and Wisconsin, a total of $15.5 million in federal funding for special education services and other programs for at-risk students could be cut.

Matt Mohs, St. Paul Public Schools chief academic officer, said the reductions could cost his district $2 million and affect nearly every federally supported program.

"The burden falls disproportionately on special services and programs; that is a challenge," he said.

It will also complicate the district's annual budget process. "It adds another layer of uncertainty," Mohs said. "Having gone through the various financial crises over the last few years it unfortunately become more of a normal circumstance for us."

While cuts to defense and social programs will sting either immediately or eventually, other reductions will affect such places as the Upper Midwest's national parks in ways that may not be as noticeable.

At least, that's the hope of Katy Ebel, who rents houseboats to visitors at Voyageurs National Park. Ebel fears reduced services and the possible closing of visitor centers and ranger stations might dissuade some campers from entering parks, but she doesn't think it will affect her business.

Other agencies that help patrol the parks and keep them clean may be asked to do more, she said. "I don't think it will be too big of an impact on people visiting."

Don Szczech, who runs two boats transporting visitors from the North Shore to Isle Royale National Park, says the talk of budget cuts often does more damage to business than the cuts themselves.

"I'm not concerned at all," Szczech said. "The park will be open. It's crazy, the stuff people dream up when this happens."

Nevertheless, if the pending budget cuts occur and are sustained they could have a lasting impact on social programs and safety nets already frayed by past reductions.

Ed Ehlinger, commissioner of the Minnesota Department of Public Health, said child vaccinations, cancer screenings, HIV testing and substance abuse treatment would all be cut back.

"All of those things are very important to the health of Minnesotans and cutting back any one of them will put people at risk," Ehlinger said. "Over half of our budget comes from federal sources. This will impact every aspect of our work."